Question & AnswerQ&A (Republic Act No. 9136)
Republic Act No. 9136 shall be known as the "Electric Power Industry Reform Act of 2001."
The State's policy is to ensure total electrification, quality, reliability, security, affordability, transparency in pricing, and full competition in the electric power industry, to encourage private capital inflow, protect public interest, promote renewable energy, and establish an independent regulatory body.
The industry is divided into four sectors: generation, transmission, distribution, and supply.
The ERC is an independent, quasi-judicial regulatory body created by RA 9136 responsible for promoting competition, setting rates, regulating market behavior, issuing rules and regulations, protecting consumers, and ensuring the efficient operation of the electric power industry.
TRANSCO assumes the electrical transmission functions from NPC including planning, construction, operation, and maintenance of the high voltage transmission grid, ensuring open and non-discriminatory access, and improving transmission facilities.
Penalties range from fines of P50,000 to P50 million, imprisonment of prision mayor, fines up to P10 million or both for prohibited acts such as market abuse; administrative sanctions; and possible revocation of franchise upon recommendation.
Stranded contract costs refer to the excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy output in the market.
NPC generation assets, real estate, and IPP contracts shall be privatized through open and transparent bidding, with at least 70% privatized within specific timeframes; PSALM Corp. manages privatization and debts; some assets like Agus and Pulangui complexes have special provisions.
A non-bypassable charge imposed on all electricity end-users to cover stranded debts and costs, missionary electrification, equalization of taxes on indigenous vs imported energy, environmental charges for watershed management, and cross-subsidies for a limited period.
It prohibits anti-competitive behavior, caps ownership limits on installed generating capacity, restricts ownership interests in transmission and generation sectors, and empowers the ERC to implement safeguards, investigate abuses, and impose penalties.
Retail competition and open access shall be implemented not later than three years after the effectivity of the Act, subject to certain conditions such as market establishment and privatization milestones, starting with large consumers down to household levels.
PSALM Corp. manages the sale, disposition, and privatization of NPC assets and liabilities, including IPP contracts, for debt liquidation, asset management, and restructuring of NPC obligations.
An Aggregator is a person or entity engaged in consolidating electric power demand of end-users in the contestable market for the purpose of purchasing and reselling electricity on a group basis.
Electricity end-users who do not have the choice of their supplier as determined by the Energy Regulatory Commission (ERC).
The Department of Energy (DOE) is mandated to annually update the Philippine Energy Plan and the Power Development Program and submit it to Congress.